NASA and United Space Alliance have agreed to adjust the overall contract value of the Space Flight Operations (SFOC) Contract, which supports launch operations for both the Space Shuttle and Space Station programs, by a debit of approximately $61 Million to reflect the reduced Shuttle flight rate in Fiscal Year 1999.

The contract was negotiated on a baseline of seven Shuttle flights per year, with adjustments to the contract if that rate varied by more than one flight per year. With four Shuttle flights in FY í99, the Government was entitled to the equitable adjustment in the contract value, reducing the total contract value to $8.75 Billion.

The contractor for the SFOC contract is United Space Alliance of Houston, Texas with work performed principally at locations in Palmdale and Huntington Beach, CA; Johnson Space Center, Houston, TX; Marshall Space Flight Center, Huntsville, AL; Kennedy Space Center, FL; and United Space Alliance/Houston facilities